Picture the exact moment your heirs receive the keys to your French property, with the transfer handled cleanly, the tax bill paid on time, and the family home preserved across borders. That outcome is possible, but only if you understand how French inheritance tax works for non-residents and act before the filing clock starts.
For the official calculation path and payment rules, see the comprehensive guide to French inheritance tax calculations. If you own property in France but live in the UK, US, or elsewhere, the law treats your estate very differently from a domestic succession. As your legal liaison with the French tax office and notaire, we help you handle the filing, deadlines, and asset review so your family can receive what is due without avoidable delay.
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Inheriting French Assets as a Non-Resident: What You Must Declare
⚠️ Legal Warning: Missing the mandatory succession declaration deadline can trigger automatic penalties from the tax office, starting at 10% and increasing if the delay continues. Ignorance of foreign tax rules is not a defense.
1. Understanding Your Tax Liability Under Article 750 ter
Under Article 750 ter, the déclaration de succession filed on Form 2705 must respect the 12-month deadline when the deceased lived outside France. French inheritance tax depends on three points: the deceased’s tax residence, the heir’s tax residence, and where the asset is located.
If neither the deceased nor the heir is French tax resident, France usually taxes only assets physically or legally located in France. That means a French house, French bank account, or French property company interest may be taxable, while assets held elsewhere are generally outside French succession tax. If the deceased was French tax resident, the position changes and worldwide assets can fall within the French tax net.
If I live in the US, does France tax my worldwide assets when I inherit a French house?
No. If neither you nor the deceased were French tax residents, France taxes only the French-situs house, not your global assets. You may still owe US reporting or tax under the US-France double taxation treaty, but that treaty usually prevents double payment.
2. Identifying Taxable Assets Before the 12-Month Deadline
Before filing Form 2705 within the 12-month window, identify every French-situs asset: real estate, French bank accounts, SCI shares, and movable goods kept in France. This step matters because the tax office can only assess what falls inside French jurisdiction.
French-situs property usually includes a villa, apartment, holiday home, or land in France. It can also include shares in a French property company, such as an SCI, plus cash held in French accounts. Furniture, art, vehicles, and other movable items kept at the property may also be counted. A full asset list allows the notaire to value the estate correctly and prepare the déclaration de succession without later corrections.
Which assets are considered French-situs for tax purposes?
French-situs assets include real estate in France, shares in French property companies, French bank accounts, and movable items kept at the property, such as furniture or vehicles. If the asset is physically in France or legally tied to French territory, it may fall within succession tax.
3. Managing Estate Liquidity Issues with Form Cerfa 2705
Form Cerfa 2705 can be used to request deferred payment when the estate is property-heavy and cash-poor. This is common when heirs inherit a house but little or no liquid cash.
If the estate cannot immediately pay the tax, French law may allow staged payment, usually backed by a bank guarantee or a mortgage on the inherited property. Interest is added during the deferral period, so this is a financing tool rather than a free extension. In many cases, heirs sell the property and pay the tax from the sale proceeds. A legal liaison can work with the notaire and tax office so the payment is aligned with the transaction timetable.
How do I pay French inheritance tax if the estate has no cash, only property?
You can ask the tax office for deferred payment under the succession rules, usually secured by a mortgage on the inherited property or a bank guarantee. If needed, your legal liaison can coordinate a sale so the tax is paid from proceeds before the filing deadline.
Case Scenario: A US-based couple owned a holiday home in Dordogne worth €400,000. When the father died, he left his share to two adult children in New York. Because the asset was in France, the succession was taxable there. The children each used the child allowance, then asked for deferred payment while the house was marketed. Their representative handled the filing, the tax office accepted the deferral, and the tax was paid from the eventual sale proceeds.
4. What Non-Residents Should Do First
If you inherit French property, your first steps are simple: confirm residency status, list every French asset, gather death and identity records, and contact a notaire early. If the estate includes real property, do not delay the déclaration de succession. The 6-month deadline applies when the deceased lived in France, and the 12-month deadline applies when they lived abroad.
For families with property in France and heirs in different countries, the fastest path is to manage the succession as a paperwork and tax process, not as an informal family transfer. The sooner the file is opened, the easier it is to avoid late penalties, valuation disputes, and blocked transfers.
5. Conclusion: Keep the Transfer Clean
French inheritance tax for non-residents is strict, but it is also predictable when the facts are gathered early and the correct form is filed on time. Article 750 ter, Form 2705, and the 12-month deadline create a clear framework for foreign heirs.
With the right legal liaison, the process becomes manageable: assets are identified, tax is calculated, payment is arranged, and the family can move forward with confidence.
